THQ Imposes Layoffs in Wake of Slow uDraw Sales

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Weaker than expected sales of its uDraw tablet for video game systems has led THQ Inc. to lay off 30 of the staff working on the product, the company confirmed on Monday. In addition, the unit’s head also will be leaving.

The Agoura Hills video game developer last week warned that revenue for its current fiscal third quarter is likely to come in 25 percent lower than it expected. Business unit leader Martin Good will also be leaving to pursue new opportunities outside the company. The company did not say how many people would be left at the uDraw unit.

The company had hoped the uDraw, which works with Wii, Xbox 360, and PS3 systems, would be a big seller this holiday season.

“Despite uDraw’s strong success on the Wii in fiscal 2011 and market research indicating strong demand for uDraw on Xbox 360 and PlayStation 3, initial sales … on these high-definition platforms have been weaker than expected,” said Chief Executive Brian Farrell last week. “As we continue to move through the third quarter, we are focused on driving sales of our (other) key holiday titles and maximizing profitability.”

The company’s “WWE 12” and “Saints Row: The Third” games are selling as well or better than expected, the company said.

Shares were down 1 cent, or 1 percent, to 91 cents on the Nasdaq.

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